The central bank has struggled to stimulate activity in the world’s third largest economy, with zero interest rates or lower since 2011. The last move was a cut from zero per cent to minus 0.1 per cent at the start of 2016.

Craig Erlam, senior market analyst at Oanda, said: “It’s been suggested that the BoJ may look to reduce its bond purchases, raise interest rates or simply increase the target yield on 10-year bonds in order to stop the currency depreciating too rapidly but with inflation still a million miles from target, Governor Haruhiko Kuroda intimated that none of these options are currently being considered.”

The Nikkei 225 – which is exporter heavy – rose to 2016 highs of 19,511.20, before paring some of its gains.

Mihir Kapadia, chief executive of Sun Global Investments, said: “While the BoJ closed the year with an optimistic view of the economy, the yen still weakened. Many investors in Asia are holding on to a ‘wait-and-see’ market attitude due to the on-going geopolitical turbulence.”